Commercial Real Estate

In Texas, for property tax purposes, we define commercial real estate as non- residential property such as; hotels, office buildings, shopping centers, apartment complexes, industrial buildings, and land zoned for commercial use.

Generally, commercial real estate properties are subject to revaluation each tax year.  Therefore, property owners should review their notices of valuation each year to determine if their property is being assessed properly.  For example:

1. Is the property being assessed above its market value?
2. Has the property been denied an exemption?
3. Is the property being assessed fairly and equitably in comparison to other comparable properties?

If the owner determines that their property is not assessed properly they should file an appeal with the appraisal review board generally on/or before May 31.  Appraisal districts will set up an appointment for an informal hearing at which time the taxpayer and/or their agent may present evidence regarding the facts relating to their appeal.  Convincing evidence to support the taxpayers’ opinion of value could be, but not limited to, the following:

1. Income analysis
2. Cost analysis
3. Sales Comparable analysis
4. Analysis of  the assessments of like properties

It is very important that any evidence and/or testimony be presented in a professional and compelling manner.  It has been my experience that the protesting party should bring copies of their evidence for the board members and appraisal district staff.  It should be noted that pursuant to Section 41.461 (a) (2) of the Texas Property Tax Code, the taxpayer or agent is entitled to copies of any evidence that the appraisal district will present to the board, fourteen days prior to the formal hearing. If a settlement agreement is not achieved, the taxpayer or agent is entitled to a formal hearing before the appraisal review board at which time both the taxpayer or their agent and the appraisal district staff will submit evidence and give testimony to the board members. The board will make their decision and issue a notice of determination which will be mailed to the taxpayer.  If the taxpayer does not agree with the board’s ruling, they may file suit in district court, or in cases involving relatively small valuations, submit a request for binding arbitration.